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Imax put on Nasdaq hit list

Says exhibitor failed to file on time

Giant-screen exhibitor Imax Corp. faces delisting from the Nasdaq financial exchange for failing to file its 2006 financial results on time, the company said Monday.

Toronto-based Imax said it has received a letter from the U.S.-based Nasdaq indicating that the company has not complied with market rules that require "timely filing of periodic reports with the (U.S.) Securities and Exchange Commission" for continued listing on the Nasdaq.

A company spokesman said the letter, dated April 3, is a formality indicating that the exchange has "started the clock" on a delisting but that the company could avoid that fate if it meets certain unspecified filing deadlines. The large-format exhibitor also said it plans to meet with Nasdaq officials to appeal their case.

On March 29, Imax said it had delayed filing its 10-K and annual financial results after broadening an internal review into accounting errors stretching over a six-year period (HR 3/30).

Another possible consequence of Imax's failure to file full-year 2006 earnings is the possibility of defaulting on financial reporting covenants for $160 million in senior debt notes.